Affordable Connectivity Program (ACP)

AUSTIN – NARUC's Telecom Committee supported permanent annual funding for the affordable connectivity program (ACP) in a nearly unanimous vote at the association’s conference Tuesday. Congress will fear ending ACP if enough people sign up, Multicultural Media, Telecom and Internet Council CEO Robert Branson told state commissioners on a diversity panel Monday. Panelists said it’s important for digital equity efforts to keep the program that’s meant to help low-income communities afford broadband.

The use of AI and other technologies in managing how spectrum is used tops the agenda for the FCC’s Aug. 3 meeting, Chairwoman Jessica Rosenworcel said Thursday (see 2307130025). The FCC also released the draft items. Commissioners will vote on proposals on power levels for digital FM radio. Also on the agenda, a draft order establishing an up to $75 monthly broadband subsidy for eligible households in high-cost areas through the affordable connectivity program.

State commissioners proposed NARUC telecom resolutions seeking permanent annual funding for the affordable connectivity program (ACP) and recommending no government subsidies to communications companies using network equipment that might pose a national security risk. The state regulator association may consider the draft resolutions at its July 16-19 meeting in Austin. Telecom Committee ex-Chair Karen Charles Peterson of Massachusetts proposed the ACP resolution and another draft that would urge expanding Lifeline Awareness Week to include broadband access. ACP funds are expected to dry up by Q2 2024, said the first resolution. “Establishing a new federal assistance program was a complex process at the federal, state, territory, tribal and local level,” and potentially losing a permanent low-income broadband program "with government oversight is troubling because universal high speed internet access is essential for a well-functioning economy.” New Telecom Committee Chair Tim Schram (R) of Nebraska proposed the national security resolution. Despite "efforts to rip out and replace equipment and services from" the FCC's covered list "to safeguard our communications networks," a March 1 FCC public notice found about 79 providers still have covered equipment. That poses "an unacceptable risk to national security,” the draft said. The resolution would encourage the FCC to work with state commissions and broadband offices to identify risky equipment and hold back funding. “NARUC recommends that no federal, state, or local governmental body provide universal service support, broadband deployment support, or any other form of grant funding to any communications company which utilizes equipment identified on the FCC’s Covered List anywhere in its network.”

State broadband officials are eager to move forward on NTIA's broadband, equity, access and deployment program following the agency's announcement Monday of each state's funding totals (see 2306260007). Industry and advocates also emphasized the need for more participation in the FCC's affordable connectivity program so households can take advantage of new or upgraded infrastructure in their communities.

NTIA announced funding allocations for its broadband, equity, access, and deployment program Monday. All entities will receive a formal notice of their allocations Friday, the agency said. The $42.5 billion program will be used for broadband deployment efforts, adoption and workforce development. Initial proposals may be submitted from July 1 through Dec. 1. States and territories will have access to 20% of their allocated funds once their proposal is approved by NTIA. Texas is receiving by far the largest BEAD award, at more than $3.3 billion.

House Communications Subcommittee members made the future of the FCC’s affordable connectivity program a major focus of its Wednesday commission oversight hearing, as expected (see 2306200075), but the panel didn’t result in a clear sense of whether Commerce Committee GOP leaders will back additional funding for the initiative. Subpanel Chairman Bob Latta, R-Ohio, and others haven’t committed themselves as either for or against further ACP funding (see 2305100073). Democrats strongly defended the program and urged its extension.

The FCC’s administration of its affordable connectivity program and other broadband initiatives won’t be the sole focus of a Wednesday House Communications Subcommittee hearing with commission Chair Jessica Rosenworcel and other commissioners, but it’s likely to be the item with the most bearing on future policymaking, observers said in interviews. The panel is happening a day before two of the commissioners -- Republican Brendan Carr and Democrat Geoffrey Starks -- appear before the Senate Commerce Committee for a joint confirmation hearing with new FCC nominee Anna Gomez (see 2306150068). The House Communications hearing will begin at 10:30 a.m. in 2123 Rayburn.

NTIA Administrator Alan Davidson warned the "broad goal of closing the digital divide is at risk" because the FCC's affordable connectivity program is "at risk of running out of money," during a New America event Wednesday (see 2306130057). Davidson emphasized the need for affordable broadband options as the agency administers its broadband, equity, access and deployment program. The internet is "the essential communications tool in our modern world" and millions of people across the country "still lack access to an affordable high speed internet," he said: "If we want to reach our goal of helping Americans thrive online, a connection alone is not enough."

The Education Department and hundreds of local and national organizations unveiled Online For All, a campaign to drive Affordable Connectivity Program enrollment. Nonprofit campaign coordinator Civic Nation said ED, working with such groups as the National Education Association and American Federation of Teachers, will focus efforts on school students and their parents, letting them know about ACP. Comcast Executive Vice President-Digital Equity Broderick Johnson blogged that the company as part of the campaign held ACP awareness events Wednesday and has a variety of others scheduled. "While it’s impressive that more than 18.5 million households have signed up for the ACP benefit so far ... with more than 31 million households eligible for the ACP, but not yet enrolled, our attention must now turn toward broadband adoption," he said Wednesday.

Backers of allocating additional money for the FCC's affordable connectivity program and other broadband initiatives the federal government created during the COVID-19 pandemic need to make Republicans "understand the consequences ... of not funding access," said House Appropriations Financial Services Subcommittee ranking member Steny Hoyer, D-Md., during a Tuesday Punchbowl News event. GOP leaders on the House and Senate Commerce committees called ACP's future into question in May when they asked the FCC's Office of Inspector General to probe the commission's management of the program money it received via the 2021 Infrastructure Investment and Jobs Act (see 2305080067).